Background:
Income-tax
laws [1] (ITL) require specified persons [2] to furnish
tax audit report (TAR) in Form 3CD. Central Board of Direct Taxes [3] (CBDT)
last amended TAR vide Notification No. 33/2018 dated 20 July 2018 to enhance
the reporting requirements in TAR to be furnished on or after 20 August 2018[4].
Amongst others, it introduced following two additional reporting requirements
in TAR:
1. Clause 30C of TAR:
General Anti Avoidance Rule (GAAR) – TAR requires to report whether a taxpayer
has entered into an impermissible avoidance arrangement and if yes, it further
requires to report the nature of such impermissible avoidance arrangement and
the amount of tax benefit in the tax year arising, in aggregate, to all the
parties to the arrangement.
2.
Clause 44 of TAR: Details relating to Goods
and Service Tax (GST) –TAR requires reporting of details of GST viz. break-up of total
expenditure with GST registered and non-registered entities and for the former,
it further requires the break-up of expenditure relating to exempt supply
covered under the composition scheme and other registered entities.
Stakeholders
perceived the above reporting requirements to be highly subjective and/or
onerous. Hence, various representations were made to CBDT for deferring GAAR
and GST reporting obligations. In response to such representations, CBDT
initially deferred the aforesaid reporting obligations till 31 March 2019 vide
Circular No. 6/2018 dated 17 August 2018 [5] and further till 31
March 2020 vide Circular No. 9/2019 dated 14 May 2019 [6].
CBDT order dated 24 April 2020
In wake
of various representations made before CBDT for difficulty in reporting
compliances in relation to aforesaid clauses in view of the global pandemic due
to COVID-19, CBDT has deferred the reporting obligation in respect of GAAR
(i.e., Clause 30C of TAR) and GST law (i.e., Clause 44 of TAR) till 31 March
2021.
No comments:
Post a Comment